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2026 Supreme(Online)(HP) 2949

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Ajay Mohan Goel, J
RAM CHAND AND OTHERS – Appellant
Versus
STATE OF HP AND OTHERS – Respondent
CWP No. 3065 of 2024



Advocates:
For the Appellants/Petitioners: Shivom K. Vashishta
For the Respondents: Pushpender Jaswal

Recovery of erroneously granted pay scales from Class-III and Class-IV employees is impermissible in law, as established by the Supreme Court of India.

Headnote:The petitioners, serving as Head Teachers and classified as Class-III employees, challenged the recovery of wages effected by the State on the grounds that they were erroneously granted a higher pay scale. The court noted that the petitioners had no role in the conferment of the said pay scale by the Department. The primary issue was whether the recovery of erroneously paid salaries is permissible from Class-III employees. The court relied on the precedent established by the Supreme Court, which identifies specific situations where recovery is impermissible, specifically including recoveries from Class-III and Class-IV employees. These petitions are allowed and disposed of with the direction that no recoveries shall be effected from the petitioners by the Department on the ground that higher pay scale stood conferred upon them.

Table of Content
1. dispute regarding the legality of recovering erroneously granted higher pay scales from class-iii employees. (Para 1 , 2 , 4)
2. recovery from class-iii employees is legally impermissible based on supreme court precedent. (Para 5 , 6 , 7)
3. direction to cease recoveries, refund amounts already deducted, and allow only prospective rectification. (Para 8 , 9 , 10)

Whether approved for reporting?

_____________________________________________________

Ajay Mohan Goel, Judge

(Oral)

The petitioners herein who are the Head Teachers, serving in various schools of the State of Himachal Pradesh. They wgere initially recruited as JBT Teachers and subsequently stand promoted as Head Teachers as per the petitions. Their grievance is that the respondents-State started effecting recoveries from their pay without issuance of any Show Cause Notice etc. It is in this backdrop, that the petitioners have approached this Court with the prayer that the respondents be restrained from effecting recoveries from their wages, more so in light of the fact that the petitioners are serving as Class-III employees and recoveries from Class-III employees has been held to be impermissible in law by the Hon’ble1Whether reporters of the local papers may be allowed to see the judgment? Supreme Court.

2. On the other hand, the stand of the State is that as the petitioners have been paid the pay scale higher than the one to which they were entitled for, it is in this backdrop that recoveries are being effected. Learned Additional Advocate General referred to Paras-2 and 4 of the preliminatry submissions and submitted that the petitioners were not promoted as Head Teachers, but were simply placed as Head Teachers from the post of JBT Teachers and, therefore, they were not entitled for the higher pay scale which erroneously stood granted to them and it is for this reason that now recoverie s are being effected.

3. I have heard learned Counsel for the parties and have also carefully gone through the pleadings as well as documents appended therewith.

4. It is not in dispute that the petitioners are all Class-III, employees, presently serving as Head Teachers. It is also not in dispute that the recoveries which are being effected by the Department are on the ground that the petitioners after being placed as Head Teachers have been granted a higher pay scale to which they were otherwise legally not entitled.

5. Fact of the matter is that the petitioners happen to be Class-III employees. It is also a matter of record that higher pay scale, if any, granted to the petitioners was granted by the Department and the petitioners had no role in the conferment of the said higher pay scale.

6. Hon’ble Supreme Court of India, in State of Punjab and others Versus Rafiq Masih (White Washer) and others, AIR 2015 SC 696, has been pleased to cultl out certain situations in which recovery is impermissible and one of the situations culled out by the Hon’ble Supreme Court is recovery from Class-III and Class-IV employees.

7. In light of the fact that the petitioners happen to be Class-III employees, recovery from them is impermissible in law in light of the above pronouncement by the Hon’ble Supreme Court of India.

8. Therefore, as the act of the respondent-Department of effecting recoveries from the petitioners does violence to the law declared by the Hon’ble Supreme Court of India, these petitions are allowed and disposed of with the direction that no recoveries shall be effected from the petitioners by the Department on the ground that higher pay scale stood conferred upon them. The amount recovered from the petitioners, if any, till date shall be refunded back to them within three months from today.

9. However, it is clarified that this Court has not made any observation with regard to the conferment of higher pay scale to the petitioners erroneously and if that is the case, the Department is at liberty to

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